Sakana AI, an artificial intelligence business based in Tokyo that was co-founded by former Google researchers David Ha and Llion Jones, as well as Ren Ito, a former executive of Mercari and member of the Japanese Foreign Ministry, is about to accomplish a noteworthy milestone. The July 2023-founded business is allegedly in negotiations to raise $125 million in a capital round that may put its valuation at over $1.1 billion, possibly breaking the record for the fastest rise to unicorn status in Japan.
Unlike many other startups in the crowded AI industry, this one takes a different approach to development, drawing inspiration from biological evolution. The process used by Sakana AI entails combining several smaller AI models to effectively build larger complex systems. Big American venture capital firms like New Enterprise Associates, Khosla Ventures, and Lux Capital are interested in this method because it uses less computing power and resources.
The expansive, resource-intensive models that other big players in the generative AI space, including Google and OpenAI, are pursuing stand in stark contrast to Sakana AI's evolution-inspired model. The company's novel strategy leverages what they refer to as "collective intelligence" principles found in nature in order to lower the financial and environmental expenses related to AI research.
The business has previously secured $30 million in January from investors such as Lux, NTT Group, KDDI, Sony Group, and Khosla. The extra cash from the next round will be used to study generative AI technologies more thoroughly. Interest in these tools has increased after OpenAI released tools like ChatGPT.
Even though Sakana AI hasn't created a product for consumers yet, its research into AI systems with fewer resources makes it a possible major participant in the market, particularly for companies looking for scalable and affordable AI solutions.
The rise of firms such as Sakana AI indicates a growing interest in alternative ways that could bring more cost-effective and sustainable advances in AI, as the field continues to grow and attract large investments.